Business · Markets · 1 hr ago
Mexican peso falls against dollar after surprise Banxico rate cut
The Mexican peso weakened against the US dollar after Banxico cut interest rates.
The headline describes the cut as unexpected.
The story links the currency's fall to the rate decision.
It gives no details on the size of the cut or the peso's exact move.
A weaker peso means it buys fewer US dollars than before.
No further policy steps are described.
Mexico’s central bank cut its benchmark interest rate by 0.25 percentage points to 6.25%, surprising most analysts.
The peso weakened against the dollar after the decision, with the exchange rate reaching 18.95 pesos per dollar during trading, according to Expansión.
Banamex branches sold dollars at 19.29 pesos on Thursday afternoon, 27 centavos more than the previous day, El Universal reported.
Banxico’s governing board approved the cut by three votes to two, after holding the rate steady on three previous occasions.
Analysts cited the rate cut and risk aversion in U.S. capital markets as factors behind the peso’s decline.
- Who
- Mexico’s central bank, Banxico, cut its benchmark rate; the peso weakened against the U.S. dollar.
- What
- Banxico lowered its rate by 0.25 percentage points to 6.25%, and the peso fell.
- When
- Thursday, November 5, 2026.
- Where
- Mexico and international currency markets.
- Why
- The rate cut partly contributed to the peso’s depreciation; Banco Base also cited risk aversion in U.S. capital markets.
This story does not have two clearly opposing sides.
Banxico’s governing board voted to cut the benchmark rate from 6.50% to 6.25.
The dollar rose toward 18.95 pesos per dollar intraday, according to Expansión.
Banamex branches sold the dollar at 19.29 pesos, 27 centavos above the previous day’s price.
- Rate cut
- 0.25 percentage points, to 6.25%
- Governing board vote
- 3 in favor, 2 against
- Wholesale exchange rate
- Above 18.96 pesos per dollar, according to El Universal
- Banamex retail dollar price
- 19.29 pesos on November 5
- Analysts surveyed by Citi
- 30 of 36 expected Banxico to hold the rate at 6.50%
4 sources
Le llueve sobre mojado al peso: ¿Por qué el recorte de Banxico es pésima noticia para el tipo de cambio?
Peso mexicano se deprecia frente al dólar tras sorpresivo recorte de tasas del Banxico
Peso se deprecia por sorpresa de Banxico y analistas prevén mayor debilidad para moneda mexicana
Dólar repunta a 19.29 pesos tras sorpresivo recorte de Banxico; tasa de interés referencial baja a 6.25%
What people are saying
El diferencial se comprime desde ambos lados, y el recorte llega con la inflación repuntando. Ahora bien, el comunicado habla de un ajuste puntual y de mantener la tasa por un periodo prolongado, es por eso que la reacción fue de recomposición de carry, no de huída del peso